Tokyo stocks down with wary eyes on virus

TOKYO: Tokyo stocks traded lower on Monday as investors weighed the impact of spreading Covid-19 infections on the economy against the positive effects of new US and Japanese stimulus.

The benchmark Nikkei 225 index opened higher, but soon dipped into negative territory, trading down 0.55 percent or 147.47 points at 26,615.92 about an hour after the opening bell.

The broader Topix index was down 0.62 percent or 11.19 points at 1,782.05.

Shortly before the Tokyo market opened, US lawmakers reached a deal for a nearly $900 billion Covid-19 relief package for millions of Americans as the nation struggles against the world's largest outbreak of the virus.

At home, the Japanese government will likely approve a record 106.6 trillion yen ($1 trillion) budget for the fiscal year starting April including measures to mitigate the impact of the coronavirus on society.

The US deal is "prompting purchases, but concerns over a rise in new cases of coronavirus infection at home and abroad are weighing on the market," Mizuho Securities said in a note.

Trade lacked a clear sense of direction as investors weighed both the positive and negative factors, analysts said.

The dollar fetched 103.40 yen in early Asian trade, against 103.28 yen in New York late Friday.

In Tokyo, Sony was up 1.22 percent at 10,380 yen but game giant Nintendo was down 1.68 percent at 65,600 and Toyota was down 0.81 percent at 7,847 yen.

Shipping firms were among losers, with Mitsui O.S.K. Lines dipping 2.83 percent to 3,095 yen and Nippon Yusen trading down 0.85 percent at 2,331 yen.

On Friday, Wall Street stocks declined, retreating from records, with the Dow ending down 0.4 percent at 30,179.05.